Cineworld (LON: CINE) share price has been nothing but a heartbreak for its investors. After years of showing faith in the company, the long-term shareholders are set to get nothing after the ongoing restructuring. This is the worst that can happen to the investors of any stock.
While Cineworld shares remain wrecked, the company is still preparing to exit its bankruptcy protection in the US. As a part of its restructuring plan, the firm has also filed for administration in the UK. The stock could now be only weeks away from delisting from the London Stock Exchange.
Cineworld Boss Bags $35M Exit Payout
According to the most recent Cineworld news, the company CEO, Mooky Greidinger, has secured a $35 million exit payout for his team. Most of this amount will go to the CEO and his brother, who are considered by many as the main architects of the firm’s collapse.
Cineworld share price can theoretically go to zero, as the new restructuring plan is designed to wipe out the existing shareholders. This is a very painful situation for the retail investors who bought the stock anticipating a recovery at some point in time.
Cineworld Share Price Forecast July 2023
It is needless to analyze LON: CINE as the trading of the Cineworld stock will be suspended soon. The assets of the company will be transferred to Holdco, Crown U.K. The lenders will control this fully-owned subsidiary.
Cineworld share price is just like a meme stock now, as trading will be suspended once the firm appoints administrators. Investing in this stock right now is like putting your hand in a meat mincer. Currently, there are plenty of discounted stocks in the market, which should be on your radar right now. The biggest lesson for the shareholders who bought Cineworld shares after its bankruptcy is to never catch a falling knife.
Don’t let Cineworld share price action disappoint you, as there are still plenty of good plays in the market. I keep mentioning such opportunities on my Twitter, where you are welcome to follow me.